Zero rated supply treatment: goods sent abroad for exhibition are not zero rated until sold or deemed supplied after the prescribed period. The circular clarifies that sending or taking specified goods out of India for exhibition or consignment does not constitute a supply at the time of removal because no consideration is received, and therefore is not a zero rated supply. Such movements require a delivery challan and maintenance of prescribed records; bond or LUT is not required. Supply is triggered and a tax invoice is required either on actual sale abroad or upon deemed supply after the stipulated statutory period; refund of input tax credit for zero rated supply may be claimed only after invoicing and if otherwise eligible under statute and rules.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Zero rated supply treatment: goods sent abroad for exhibition are not zero rated until sold or deemed supplied after the prescribed period.
The circular clarifies that sending or taking specified goods out of India for exhibition or consignment does not constitute a supply at the time of removal because no consideration is received, and therefore is not a zero rated supply. Such movements require a delivery challan and maintenance of prescribed records; bond or LUT is not required. Supply is triggered and a tax invoice is required either on actual sale abroad or upon deemed supply after the stipulated statutory period; refund of input tax credit for zero rated supply may be claimed only after invoicing and if otherwise eligible under statute and rules.
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